Myanmar's performance in the Colliers International latest Asia Market Snapshot Q2 2018 indicates that while the office sector performed well in Q2, sectors to watch in Q3 will be retail and industrial.

Supplied: Thilawa Special Economic Zone

Reviews to the terms and conditions of Myanmar's existing oil and gas production sharing contracts, announced by the Ministry of Electricity and Energy could broaden investment opportunities in the country. Industrial estates have likewise picked up, specifically international grade projects such as Thilawa SEZ.

Colliers International latest Asia Market Snapshot Q2 2018 reveals a foreign investment in all sectors of Myanmar's property market will continue to drive demand across the board.

"While Yangon remains a key investment destination, Mandalay is also becoming more apparent on the radar. Chinese investors have special considerations in Mandalay given its long-standing trading ties to China’s Yunnan Province," he added.

Meanwhile, in Yangon, foreign developers are attracted to both stand-alone and integrated projects, with some even looking at massive township-size developments.

The industrial sector shows significant promise as the Ministry of Electricity and Energy has announced its review of the terms and conditions of Myanmar’s existing oil and gas production-sharing contracts, which could broaden investment opportunities in the country. Industrial estates have likewise picked up, specifically international grade projects such as Thilawa SEZ.

The report reveals that the government is also planning the expansion of Yangon’s central business district southwest of what is currently downtown Yangon. This new endeavour spans more than 20,000 acres, or 8,100 hectares, the first phase of which is a 10 sq km industrial zone. New Yangon City Development Company (NYCDC), the government-formed entity spearheading the development, has invited both foreign and local investors to help facilitate the project through public-private partnerships.

Apart from the industrial sector, Colliers also sees robust growth in the retail and office markets. Incoming stock for Yangon’s office market in 2018 is one of the highest additions since 2015. The continuous flight to quality along with the corrections in citywide lease rates will continually spur demand.

Meanwhile, retail investors from Japan and Thailand have shown significant interest in bringing capital to Myanmar since the Ministry of Commerce fully opened the sector to foreign investment. With retail already one of the strongest sectors in the market, this change is expected to boost demand further.